A product market is in equilibrium:
A. whenever there is no surplus of the product.
B. whenever there is no shortage of the product.
C. when consumers want to buy more of the product than producers offer for sale.
D. where the demand and supply curves intersect.
Answer: D
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Investors in the London Company (which was later re-formed as the Virginia Company)
a. earned substantial profits on their investment. b. earned modest profits on their investments. c. broke even, with revenues just covering the principal. d. earned substantial losses on their investment.
If the interest rate increases, then the:
a. economy will move to a new point along the existing consumption function. b. consumption function will shift upward. c. investment demand curve will shift downward. d. investment demand curve will shift upward. e. economy will move to a new point along the existing investment demand curve.
Trade can occur only if property rights are
A. not enforced. C. legally binding. D. not transferable.
When demand is elastic, an increase in price will cause
a. an increase in total revenue.
b. a decrease in total revenue.
c. no change in total revenue but an increase in quantity demanded.
d. no change in total revenue but a decrease in quantity demanded.